Victorian Future Fund to be Managed by Victorian Funds Management Corporation
Posted on 05/08/2022
In the latest budget, the government created the Victorian Future Fund. Victorian Future Fund will support the state’s debt stabilization strategy.
The Victorian Future Fund will be established using proceeds from the VicRoads Modernization Joint Venture. The investment returns from the fund will be quarantined and returned to the fund so that its balance will grow over time to offset borrowings. Both the initial investment and future returns will be used to repay COVID-19 pandemic borrowings. Victorian Future Fund is projected to have a balance of around A$ 10 billion in the medium term.
Further investments will be made into Victorian Future Fund through proceeds from designated government land sales and a proportion of future government budget surpluses once net debt stabilizes.
Victorian Future Fund will be managed by the Victorian Funds Management Corporation (VFMC), the state’s specialist investment agency. The VFMC will implement a diversified investment strategy designed to deliver the best possible returns for Victorians.
Victorian Future Fund will be managed in line with strict environmental, social, and governance (ESG) principles consistent with other investments managed by the VFMC.
